AEF Amaka Cotton Ginneries Limited

completed

ENVIRONMENTAL REVIEW SUMMARYProject Name AEF/ZAMBIA: AMAKA GINNERIES LTD.Region Sub-Saharan AfricaSector AgribusinessProject No. 008872 March 16, 19981. This project is to be financed through the Africa Enterprise Fund (AEF). Amaka Cotton Ginneries Ltd. (Amaka) is a two year old company which is setting up a cotton ginnery in Kabwe. Amaka is owned by three local companies, two of which are cotton spinners: Swarp Spinning Mills Limited and Mukuba Textiles Limited. The ginnery will be located in the same town as Zambia-China Mulungushi Textiles Limited, another textile company. With a capacity of 9,000 tonnes per annum, Amaka will be able to meet about 50% of lint requirements of the three spinning companies. Seed cotton for the ginnery will be purchased from outgrowers, commercial farmers and merchants. Access to outgrowers will be through two companies owned by the sponsors, Swarp Agricultural Development Company and Amaka Agricultural Development Company, which operate extensive outgrower schemes in the Kabwe and Ndola rural areas. Amaka has already purchased a 54 acre developed site in Kabwe which has a 14,000 m² warehouse, office block and railway siding. At present the warehouse is being used in Amaka’s cotton trading business to store seed cotton which is later sold to Lonrho. Once the project is completed the warehouse will store seed cotton for the ginnery as well as lint and fuzzy seed for sale. Amaka has already taken delivery of ginning equipment purchased with a Chinese government loan, but requires additional funds to construct a building to house the ginning equipment, as well as working capital to buy seed cotton.2. This is a Category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. The key environmental, health and safety issues that were analyzed in the context of this project are as follows: • source of water and power, including fuel storage if applicable; • treatment and disposal of process effluent; • disposal of solid and other liquid wastes, including sewage; • ambient dust emissions; • employee exposure to dust, heat and noise; • provision of employee personal protective equipment; • health and safety training for employees; • fire safety and emergency response; and • plant hygiene and housekeeping practices.3. The sponsor has submitted environmental management information regarding each of these issues, as described below.4. Source of water and power, including fuel storage if applicable: Water for the ginnery and warehouse are obtained from the local authority. These supplies are not adequate for the entire operation, and are unreliable. For these reasons, Amaka has rehabilitated an existing borehole on the site (34 meters in depth), an overhead steel storage tank (approximately 105,600 liter capacity), and pumping equipment to ensure sufficient water for the facility. Electricity is obtained from the national grid via a three phase, 300 kva transformer. The sponsors are currently in the process of installing an additional 700 kva transformer specifically for supplying the ginnery. The facility also has an existing underground diesel fuel storage tank and delivery pump. The ginnery does not use diesel fuel in any of its operations, however.5. Treatment and disposal of process effluent: The ginning process does not produce effluents of any significance. Seed cotton is received at the facility in 80-100 kg jute packs. The seed cotton is then drawn up through a pneumatic valve into a separator that removes heavy foreign matter. From there it passes through a series of roller separators and is dropped into saw gins. Here the lint is separated from the seed (ginning). The lint is sent to a condenser and further cleaners and finally to the bale press for baling. The seed is sent to the bagging area for resale to oil extraction companies or for planting. Waste cotton is recycled to the degree possible; the fraction that cannot be recycled is collected through cyclones, bagged and sold as stuffing material. The only lubricant in use at the facility is hydraulic oil which is used in the operation of the bale press. It is stored in steel tanks inside the factory and is recycled on a continuous basis. 6. Disposal of solid and other liquid wastes, including sewage: Other than the small amounts of process waste noted above, Amaka''s operations produce only office waste, which is collected weekly by the municipal authority. Sewage from the plant is discharged to underground septic tanks linked to the main council sewage lines.7. Ambient dust emissions: All cotton to be ginned is passed through a series of metal pipes and ducts to the various machines that are part of the process. As a result, very little dust is released to the workplace. Any dust that does escape into the factory will be drawn into cyclone extractors and either collected for recycling or sold as stuffing material.8. Employee exposure to dust, heat and noise: The ginnery is well ventilated at roof level and equipped with fans and cyclone extractors, as well as four large roller shutter doors. These doors, two at either end of the factory, will be kept open during working hours to increase ventilation. According to information provided by equipment supplies, the noise level of all equipment to be installed complies with World Bank guidelines. 9. Provision of employee personal protective equipment: All employees will be supplied with standard protective clothing in the form of overalls, dust coats, safety shoes and dust masks, as needed for the particular jobs for which they are hired. Use of this clothing will be enforced through a system of fines and other penalties for non-compliance.10. Health and safety training for employees: In-house training of the proper use and maintenance of all equipment will be conducted initially by equipment suppliers. Subsequent training and re-training will be conducted by Amaka management. In addition, Amaka will provide basic health and safety training to all employees, including fire safety and response training (see below). The plant will be equipped with first aid kits and selected employees will be given first aid training. In the event of an accident or illness, employees will be taken to a clinic or hospital in Kabwe.11. Fire safety and emergency response: Because cotton can be highly inflammable if not handled properly, fire prevention and response is a key management concern. Amaka has installed a 6-inch water ring fitted with fire hydrants at strategic locations, surrounding the entire warehouse and factory complex. A series of indoor and outdoor fire reels have been fitted throughout the premises which draw off the water ring. The borehole/water storage tank are equipped with a heavy duty pumping equipment, including automatic pressure switches and controls. The storage tank is kept full at all times. In addition, approximately 40 powder extinguishers are being installed throughout the facility. All seed cotton and finished cotton bales will be stored away from flammable materials and large "no smoking" and fire hazard signs will be posted. All electrical installations will be earthed (grounded) and checked regularly for sparks or other potential fire hazards. All persons entering the premises will be required to leave any lighters or matches at the security checkpoint. Smoke detectors and fire alarms will be installed throughout the plant. Amaka''s management team have consulted closely with the local fire authorities to ensure that the facility meets or exceeds all relevant fire codes. The Kabwe Municipal Council operates the primary fire safety training center in Zambia, and Amaka has arranged to have all its employees undergo fire safety training at the center. The training center will also undertake regular fire drill and on-site training programs on Amaka''s premises.12. Plant hygiene and housekeeping practices: The factory manager will ensure that the plant is kept clean at all times. Amaka intends to employ up to four full-time general cleaners to maintain the factory and other facilities. Passageways and walkways between equipment will be kept clear to prevent occupational accidents. The factory will be posted with signs regarding appropriate safety and housekeeping precautions.13. Based on its review of Amaka''s environmental management program, IFC concludes that the proposed project is being designed and will be operated to meet Government of Zambia requirements as well as all relevant World Bank policies and environmental, health and safety guidelines, and environmental clearance is given for this project. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.L:\WPEU\LB\AEF\ZAMBIA\AMAKA.ERSMarch 17, 1998 9:19 AM